This week I attended the Ladies in Real Estate (LiRE) 50/50 Breakfast at Quell Workspaces in Clerkenwell, for a panel discussion with LiRE Committee member Sophia Clarke and Fergus Evans, Office Portfolio Director at Grosvenor, on what "quality" really means in today's office market.
Across the panel discussion and the Q&A that followed, we discussed the growing tension between fit-out standards and sustainability, and the importance of balancing top tier amenities with carbon emissions. It was incredibly helpful to hear the thought process on whether landlords should default to brand new fit-outs that may negatively affect their embodied carbon impact, or retrofit older stock to meet EPC targets.
The issue of lease length came up repeatedly: in practice I have seen that occupiers are increasingly drawn to shorter, more flexible terms, sometimes even licences or twelve-month flex products. It was interesting to hear just the kind of of factors that Landlords consider when weighing up the risk of vacant spaces that shorter, more tenant friendly breaks terms create against the payback period on Cat A and Cat B fit-outs.
We also compared regional and London markets during the discussion and how that is likely to affect the investment space. While prime rents are lower regionally, the cost of materials and fits our remain more similar to London and tenants everywhere expecting the same basics: air conditioning, strong amenity offerings, cycle storage, showers and good-quality space to attract and retain staff.
With an engaging Q&A following the panel discussion and a good time for networking allocated a the end it was a great morning of insight and connection.
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